What happened
Microsoft has offered voluntary buyouts to around 60,000 employees in the US, UK, Canada and India. According to The Verge, this is the first time the company has presented such an offer to so many employees.
Why now
The offer is part of Microsoft's effort to lower operating costs without reducing investment in AI infrastructure. Earlier this year the company had offered a retirement package limited to around 9,000 employees; the new offer greatly expands that scope.
What it means for the sector
Comments by CEO Satya Nadella over the past two years had signaled that AI would fundamentally change the size of Microsoft's workforce. This offer is seen as one of the first concrete steps in that shift.
